IT industry woes
THERE’S never been a dull moment when visiting California, and as a delegate attending a technology conference, I was reminded of this once again — at least one good thing hadn’t changed in a world of seemingly perpetual decline.
But one thing had — there was a lot of talk of ‘on-shoring’ jobs; bringing IT jobs back to America. The race to harness human potential and realise cost-savings by setting up software centres around the world is slowing down.
Stubborn high unemployment numbers and gloomy world economic factors in the West are causing a rethink about whether to ship jobs overseas or create employment at home. The Indian commerce and industry minister met his counterpart in America to focus on the decline of H1 visas issued to Indians lately. This is but natural — one reaches for potential and expands horizons overseas when the situation is not dire at home.
This places a damper on our budding IT industry as it struggles to compete and provide services globally on a much scaled-down version of India or other Asian and East European countries. The situation necessitates that our government take some much-needed action. A passive attitude, or worse, inaction will leave the industry in a hopeless position.
A few years ago, I had written that the Ministry of Education work hand-in-hand with the information technology ministry to create the curriculum and skills needed for the information age. Today, one is equally convinced that in addition to the education ministry unlocking the potential in information technology we will need the commerce ministry to play an active and vital role.
If we are to develop information technology as an industry, and be a part of the globe’s future, we must formulate a comprehensive strategy to foster growth. This can no longer rely solely on policies aimed at attracting foreign investment which exploit our human talent and leave us with a mere information technology infrastructure.
It is essential to stimulate growth by channelling domestic business opportunities into local software firms.
This is precisely what the West did when it started out. Businesses realised the role technology can play in streamlining processes, and provide management with the data and control for making the right decisions.
This fostered a culture of businesses and commercial enterprises supporting research and development at universities, and employing university graduates to give rise to a new age. It was the spillover of this rapid rise which turned towards human resources overseas.
This is a defining moment. We must create an impetus for local demand, so that we can develop without being dependent on others farming out work to us. By taking this step, we are not only going to help businesses locally, we will help our IT industry mature. The potential is virtually untapped, but it needs support and a big push from local businesses.
Government can provide the right incentives, but it must first recognise that education and commerce must come together to support information industry. This is similar to planting a seed — a lot of care and nurturing is required before it becomes a tree which bears fruit.
The writer is an IT consultant.
Pakistani software firm has to learn how to develop industry locally, Copyright right and patent law from legislative will help protecting the intellectual property. So far till now the whole industry has been relying on outsoured job from the west, Local firm need to focus creativity, product development, packaging, quality improvement to succeed.
The future of IT outsource is doomed. too much competition, not just from India but eastern europe, Far East and china/russia is taping into the market.
It must be adequately clear from review of the past 15 years that writing repeatedly and seeking Government to "do something" (like Ministry of Education should collaborate with Ministry of IT on curriculum development), hasn't done much and isn't going to yield much in the foreseeable future as well.
And this is no hint at making small HR, Payroll, or retail outlet cash machine sotware or small time utilities for iPhones and androids…. this is a references to developing IT products to tune of ERPs, protocols, cryptography, cartography, operating systems, programming languages, database engines, social networking system, or other applications that have a very high acceptance and utilisation. The reason for pointing towards the "softer" side of IT is purely becasue developing any other "harder" type of IT product will be next to impossible since it becomes capital intensive to create the infrastructure & environment of mass production of such products (like systems / networking / security or other hardware / devices design & development).
If there are such good technical resources, can there be a marketable IT product (that is comaprable to one with high market demand) which is equally functionally capable but significantly economical and is supported? On a careful analysis, the probable result may reveal that potential for development of such IT product is there, and there are good chances that it will be reasonably economical but where Pakistanis will get a serious hit is the long-term approach, i.e., inability to own and support it over full life-cycle. There are probably just a handful of technology outfits in Pakistan which recognize the need for ownership of a product over full life cycle. Hence, we are yet to see a product that grabs the attention of those companies that have money to spend (and they do on all brands and products from western suppliers).
While author's enthusiasm is appreciated, it still is not justifiable to keep running after the off-shore business. The point by Nighat needs more atttention…. If there IS in fact so much of talent in Technology area in Pakistan, why not do it FOR Pakistan? Why produce and sell outside pakistan? Why not develop centres of excellence in Pakistan "for Pakistan".
India and Pakistan can work together in multiple areas including IT… as we have quite a number of talented manpower…which will improve both the countries
author is very right, Pakistan's government should seek from the US and Europe tax benefits to their companies moving calls centers to Pakistan, instead of the aid given. This would benefit the local IT industry.
Glad you agree… however practical ideas are necessary to channelling domestic business opportunities into local software firms… time to brainstorm.
ALL CORRECT.